A joint venture reduces the risks of expropriation and harassment by host country officials.

Question

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A joint venture involves a partnership between a domestic company and a foreign company, which can reduce the risks of expropriation and harassment by host country officials. This is because the foreign company brings its expertise and knowledge of the host country's regulations, customs, and business practices, which can help the joint venture navigate any potential legal or political issues. Additionally, the partnership can provide a sense of legitimacy and local support, which can deter officials from engaging in any unfair practices.

A Joint Venture Reduces the Risks of Expropriation and Harassment